April US existing home sales from the National Association of Realtors fell 2.7% to 5.858 million v forecasts of a 2 percent rise. Notably pressure is coming from the supply of existing homes for sale remains near all-time low levels. This is creating affordability pressures for prospective buyers.
Mortgage rates have risen from record low levels as the economy reopens from coronavirus-induced restrictions.
April 2021 US Existing Home Sales from the National Association of Realtors
After months of gains amid record-low interest rates and as people move away from the big cities as they have more flexible work arrangements due to the coronavirus pandemic we saw a sharp slow down with higher interest rates (though still very low historically.
- US Existing Home Sales Change Apr: 5.85M (est 6.07M; prev 6.01M) –
- Existing Home Sales (M/M) Apr: -2.7% (est 1.0%; prev -3.7%)
The falling number of homeowners in mortgage forbearance will also bring about more inventory”, said Lawrence Yun, NAR’s chief economist.
All but one of the four major US regions witnessed month-over-month drops. Annually however, sales surged 33.9 percent.
The median existing-home price for all housing types in April was at a record of $341,600, up 19.1 percent from April 2020. Total housing inventory amounted to 1.16 million units, up 10.5 percent from March’s inventory and down 20.5 percent from one year ago. source: National Association of Realtors
Median House Prices Record High
- The pace of price increases well beyond the pace of income gains, which is going to create affordability pressures for prospective buyers along with rising mortgage rates.
- Median existing-home price for all housing types in April was at a record of $341,600, up 19.1 percent from April 2020
- The prices tell the story more than the headline. The 4.7% m/m rise is on the heeds of a 5.0% m/m rise the month prior.
- Up spiked prices to $341.6K from $310.7K in February.
Existing Home Sales Month Long Supply
Existing home sales account for 90% of US transactions and are calculated on a contract close basis. New home sales account for the remaining 10% and are based on contract signings.
- Inventory 1.16m, or 2.4 months, up 10.5% from March’s inventory and down 20.5% from one year ago (1.46 million).
- The supply of existing homes for sale remains near all-time low levels.
- Unsold inventory sits at a 2.4-month supply at the current sales pace, slightly up from March’s 2.1-month supply and down from the 4.0-month supply recorded in April 2020.
- NAR first began tracking the single-family home supply in 1982. Properties typically remained on the market for 17 days in April, down from 18 days in March and from 27 days in April 2020.
- Eighty-eight percent of the homes sold in April 2021 were on the market for less than a month.
- First-time buyers were responsible for 31% of sales in April, down from 32% in March and 36% in April 2020.
- NAR’s 2020 Profile of Home Buyers and Sellers – released in late 20204 – revealed that the annual share of first-time buyers was 31%..
Source: NAHB
From The TradersCommunity News Desk